Seyfarth Synopsis: The “Anti‑Waiver of Employment Rights Act” (S4424‑A) would broadly invalidate contractual provisions waiving or limiting employees’ rights under the New York Labor Law and Human Rights Law. The law—if signed by the Governor—would significantly expand employee protections in New York and may expose existing agreements to challenge.
Both chambers of the New York Legislature have passed the “Anti‑Waiver of Employment Rights Act.” The legislation would establish that rights under the Labor Law and Human Rights Law are non‑waivable as a matter of public policy. It explicitly seeks to abrogate court decisions permitting employers to limit statutory rights through private agreement, including by shortening limitations periods and restricting enforcement mechanisms.
The bill will become law if signed by Governor Hochul. Under New York legislative procedure, the bill may not be presented to the Governor for consideration, if at all, until year-end 2026, at which time she will be required to approve or veto it. Thus, the bill will sit in limbo for an indefinite period until the parties choose to move it forward.
Core Prohibition and Limited Exceptions
The statute provides that no contractual provision waiving or limiting any employee’s substantive or procedural rights, remedies, or claims under the Labor Law or Human Rights Law “shall be valid,” including with respect to claims that are asserted or unasserted.
The statute is drafted broadly, reaching any contractual provision—express or implied—that limits such rights, remedies, or claims, including those that may not yet be asserted or even legally cognizable. In practice, the law is expected to eliminate most prospective waivers and sharply limit post‑dispute waivers.
Waivers are permitted only where they are:
- part of a good‑faith, bona fide dispute resolution not raised or initiated by the employer; or
- included in an agreement entered at or after termination of employment.
The statute also preserves certain waivers in collective bargaining agreements where expressly authorized.
Federal Preemption and Timing
The statute by its terms does not apply where its provisions are preempted by federal law, a carveout that is likely to significantly limit its reach. In particular, arbitration agreements governed by the Federal Arbitration Act—including class and collective action waivers incorporated into such agreements—will likely remain enforceable under prevailing federal law.
At the same time, the statute’s broad reference to “procedural rights” is likely to generate litigation at the margins, including challenges to particular provisions or structures.
The statute would take effect immediately upon enactment, which as noted above could be several months from now, if at all. Although the bill does not expressly address retroactivity, legislative materials indicate an intent to reach existing agreements that purport to waive statutory rights, an issue that will likely be litigated.
What This Means for Employers
If enacted, S4424‑A would have significant implications for standard employment agreements, including:
- Contractual Limitations Periods. Provisions shortening statutes of limitations—previously upheld by some courts—would likely be unenforceable.
- Arbitration Agreements and Class Waivers. Core arbitration frameworks are likely to remain enforceable under federal law, but employers should expect continued litigation over these questions.
- Mid‑Employment and Prospective Waivers. Mid‑employment releases tied to compensation and other prospective limitations on statutory rights are likely to face substantial risk.
- Other Contractual Terms. Jury waivers, confidentiality or non‑disparagement provisions, and classification‑related disclaimers may be implicated if they are construed to limit statutory rights.
Conclusion
S4424‑A would represent a significant shift in New York employment law, replacing more targeted regulation with a broad prohibition on contractual limitations of statutory rights.
If signed, the law will likely prompt substantial litigation, particularly regarding federal preemption and existing agreements, and require employers to reassess longstanding approaches to employment contracts in New York.
We will continue to monitor developments and provide updates. Please reach out to the authors or your Seyfarth attorney with any questions.
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